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Originally Posted by
David Merrill
Referring to bank notes..
"There was nothing illegal about using them, but on the other hand no law required anyone to accept them. Therefore they were not considered "lawful money." The term "lawful money" was reserved for money which the law did require people to accept, i.e., legal tender money."
"In 1933, Federal Reserve notes were made legal tender. See 31 USC 392, which was adopted in 1965 to replace 31 USC 462, enacted in 1933. Since that time Federal Reserve notes, as well as all other United States currency and coins, have been "lawful money".
So after reading this, I've come to the conclusion 12 USC 411 was really only applicable until 1933, when Federal reserve notes became legal tender. After that time, the FRNs became lawful money (legal tender which had to be accepted as payment). This doesn't take away the fact that they aren't money, they are credit. Notes to which excise and duties can be attached, the letter just brings a few things to light. At least if I'm reading it correctly.
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